New houses in Bellshill have pushed up prices over 2004

The average cost of a home in the town, located south east of Glasgow, rose from �60,988 to �103,928 in 2004.

The increase was 30% above its nearest Scottish rival - Larbert, near Falkirk.

Edinburgh remains Scotland's costliest place to buy, with an average price of �177,028, with Lochgelly in Fife the least expensive at �60,885.

However, Bank of Scotland group economist Tim Crawford said the former mining town was likely to benefit from the "ripple effect" from the Scottish capital.

"Towns within easy commuting distance of Edinburgh are becoming increasingly attractive to people priced out of the housing market in the city," he said.

As most existing homes within Bellshill are traditional semi-detached houses or flats they remain very affordable for most people Tim Crawford Bank of Scotland

Mr Crawford said that one of Bellshill's selling points was its location within easy commuting distance of Glasgow.

He added: "As most existing homes within Bellshill are traditional semi-detached houses or flats they remain very affordable for most people.

"There is also an extensive new build activity in the town and the new Woodside Gardens development of townhouses and detached homes which are currently under construction will continue to push up prices in the area."

The bank's annual house price league table showed that the gap between prices in Scotland and the south of England had narrowed over the last year.

The Woodside Gardens development is expected to push up prices

However, the average cost of a home in the south is still more than double that north of the border.

Mr Crawford said that the trend which has seen house price growth in Scotland outpace the UK average is expected to continue into 2005.

"Despite these large increases Scotland remains the most affordable place to buy a house in the UK," he said.

A dozen Scottish towns saw their average house price rise by 30% or more in 2004.

The 40% increase in Larbert took average prices there to �146,093, while Kilmarnock, Coatbridge and Johnstone all reported rises of 38%.

Price rise

For the last two years the major house price gains have been seen in the west of Scotland.

Across the UK, the second largest price rise was seen in Dukinfield, Cheshire, where they increased by 60% to an average of �124,697.

Port Talbot in west Glamorgan was third with a 50% increase during 2004 to �96,846.